Richland Ends Year With Surplus

Richland Township officials last week closed the books on their 1991 budget with a $14,810 operating surplus for the year.

That surplus did not include the $26,406 carryover from 1990, nor was the township forced to spend any of the $50,000 it had set aside from a certificate of deposit it had cashed earlier this year.

In November, the township announced after months of anxiety that it would not be forced to increase its 6-mill real estate tax.

Instead, officials announced that they expected a year-end carryover of $85,000, including the $50,000. Together with the untouched $26,406 operating surplus from 1990, the total carryover stands at $91,216.

Beyond that, according to Township Manager Carl Young, Richland also has cash reserves of $145,000, including $100,000 earmarked for the township's nascent water system.

To begin 1991, Richland budgeted $1,055,505 in revenues against $1,042,895 in expenses, for a $12,610 surplus.

A depressed real estate market, however, pushed down both sides of the budget, with revenues from real estate transfer taxes and building fees declining alongside the inspection, legal and engineering costs budgeted for housing development.

As a result, the final 1991 budget showed $974,924 in revenues against expenses of $960,114.

The one bright spot in the budget was an unexpected jump in revenues from the earned income tax, the 1 percent tax on income the township shares with the Quakertown Community School District. Earned income tax revenues jumped from $403,362 in 1990 to $448,834 in 1991, a gain of $45,472.

Keeping an eye on the recession, the township has projected earned income tax revenues at $400,000 for the coming year.

Meanwhile, the township's interest earnings in 1991 declined from an expected $25,000 to $14,801 due to the reduction in interest rates. For this year, the township has projected $20,000 in interest earnings.

Township salaries are budgeted to rise 4 percent, though the official figure will not be set until Monday's reorganizational meeting. If raises are approved, Young's base salary would rise from $38,000 to $40,000, Administrative Assistant Marita Thompson's would go up from $23,500 to $24,440 and Zoning Officer George Gardner's from $22,265 to $23,156.